Delayed Subsidy Examples

Note: These examples assume that the retiree first worked prior to July 1, 2008 and meets all pension eligibility requirements.

Service Credit Impact on Insurance Subsidy Qualification

MIP - 46 with 30

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
0 years 3 years 27 years 52 Wait 3 years 3 years of service credit were purchased after July 1, 2008
3 years 0 years 27 years 52 Immediately 3 years of service credit were purchased before July 1, 2008
0 years 3 years 27 years 59 Immediately The member meets all eligibility requirements for an early reduced retirement*
0 years 5 years 27 years 52 Wait 3 years 3 years needed to reach the minimum requirements for 30 years and out
0 years 15 years 15 years 46 Wait 9 years Must wait until age 55 when member would be eligible for an early reduced retirement*


*Must meet all eligibility requirements for an early reduced retirement.

Service Credit Impact on Insurance Subsidy Qualification

Basic and MIP Members - Early Reduced

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
0 years 3 years 15 years 55 Immediately The purchased service was not needed to reach minimum eligibility for early reduced retirement*
0 years 3 years 12 years 55 Wait 3 years 3 years of service were purchased after July 1, 2008
0 years 3 years 12 years 59 Wait 1 year Must wait until age 60
0 years 5 years 12 years 55 Wait 3 years 3 years of service needed to reach the minimum

eligibility for early reduced retirement*

0 years 2 years 13 years 55 Wait 2 years 2 years of service were purchased after July 1, 2008
2 years 0 years 13 years 55 Immediately 2 years of service were purchases before July 1, 2008


*Must meet all eligibility requirements for an early reduced retirement.

Service Credit Impact on Insurance Subsidy Qualification

Basic - 55 with 30

Service purchase before July 1, 2008 Service Purchase on or after July 1, 2008 Earned Service Age at Termination Subsidy Begins Why?
6 years 4 years 20 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
3 years 1 year 26 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
5 years 5 years 25 years 55 Immediately 5 years of service were purchased before July 1, 2008 giving member 30 years of service
0 years 15 years 15 years 55 Immediately The member meets all eligibility requirements for an early reduced retirement*
0 years 5 years 25 years 52 Wait 5 years 5 years of service were purchased after July 1, 2008

(Member eligible for pension payment at age 55)*


*Must meet all eligibility requirements for an early reduced retirement.